If you’re short on cash, one of the financial solutions that you can make is to apply for a cash advance loan. This type of loan is also known as a payday loan and it is received the blunt end of negative reputation in the past years. While there are several advantages in applying for a cash advance loan, the disadvantages are somehow plentiful. Still, we can’t deny the speed and flexibility of a cash advance loan.
Before planning to get a cash advance loan, make sure that you’re aware of its pitfalls. These are the well-known pitfalls of cash advance loans:
The Dangers of Being Shylocked
Here’s a sad and terrifying truth: most payday loans are linked to shylocking activities held by local criminals in a district. This is the reason why most payday loans have huge interest rates, forcing you to repay as soon as humanly possible. Before getting a cash advance loan, you must consider the source of the loan. While small payday loan offices have tempting offers, it’s best to transact with a bank or any reputable financial group.
Obnoxious Interest Rates and Fees
Usually, under a payday loan agreement, you only have less than 20 days to pay for the loan. This can be a terrible burden for everyone. Extra penalty fees can even make things worse, leaving you with a volatile loan. If you really can’t avoid applying for a payday loan, then you need to prepare for the consequences. Your first concern should be loan repayment within the agreed time. Otherwise, the penalties associated with the loan may drive you crazy.
Overly Persistent Lenders
Some lenders who are dealing with payday loans offer very little support for their clients. In fact, they are only concerned about the outcome of the business. Whenever clients have questions about rates, the lenders usually give hogwash information that can be misleading. This is not the situation with all payday loan lenders, however. In this sense, you need to be really cautions regarding the cash advance lender. Ask your friends and family about the most reputable payday loan lenders that they can think of.
Even though cash advance loans have many negative sides, they can still solve financial dilemmas of varying scales. To avoid regrets, you must be meticulous in your search for the best payday loan. With the help of the Internet (especially social media), you can find the top five payday loan lenders near you.